Car & Equipment Finance Nelson Bay

Asset financing is a great way to get assets sooner whilst keeping your cash flow manageable, which allows for opportunities that may have not been available otherwise.

•   Can reduce larger loan costs
•   Manage cash flow problems
•   Capitalise on opportunities as they arise
•   Get your hands on new assets sooner

Equipment financing allows businesses that rely heavily on equipment or expensive machinery to keep up to date and maintain current equipment.

•   Maintaining and purchasing heavy machinery.
•   Purchasing equipment in line with business growth.
•   Keeping up with technology changes as the business landscape transforms.
•   Replacing or purchasing trade tools.

A balloon payment is a lump sum owed to the lender. It generally falls at the end of your loan period. This allows you to repay only part of the principal of your loan over its term, reducing your monthly repayments in exchange for owing the lender a lump sum at the end of the loan term.

Balloon payments vary in amount but the general rule of thumb is 50 per cent of the total loan value. So for a $30,000 loan you could have a $15,000 balloon payment.

Your loan term is something that will be decided on by you and your lender. It’s important to keep in mind that the longer your loan term, the more interest you’ll be required to pay. For asset finance, you can have a loan term anywhere between one and seven years.

Novated lease and car loans have similar features, but also some key differences.

•   Regular repayments are done for both. 
•   Balloon payments are an option at the end of each of these loans. 
•   A novated lease is a three-way deal between you, the lender, and your employer.
•   You own the vehicle from day one with a regular car loan. 
•   Once the loan term ends on a novated lease, and the balloon payment has been repaid, you own the vehicle.
•   After-tax earnings are used to finance a car loan, whereas pre and post-tax pay are used for a novated lease.